CUC cleared for base rate increase on bills

| 25/05/2016 | 18 Comments

power meters(CNS): Electricity bills will be going up next month on Grand Cayman after the Electricity Regulatory Authority (ERA) approved a base rate hike of 0.1%. CUC customers can expect to see an increase of a few cents on their monthly bills, officials said in a release confirming the price increase. The energy charge component on bills from 1 June will mean an increase of about 11 cents for the average residential customer. The regulator approved the annual hike after reviewing CUC’s audited financial reports and various economic figures, such as the consumer price index.

“This marginal increase in base rates will support CUC’s ongoing investment in infrastructure necessary to provide safe, reliable and cost effective electricity service to all consumers,” said the firm’s president, Richard Hew. “CUC’s base rates remain at or below most other utilities in the region. More significantly the overall rate, including the fuel cost charge rate, is currently at an 8-year low, assisted by the decline in world fuel oil prices and a reduction in government fuel duties,” he added as he justified the price hike.

However, he urged customers to become as “energy efficient as possible” in the summer months, when temperatures and air conditioning use both rise.

ERA Managing Director Charles Farrington said the small increase in the rate would not significantly impact most consumers’ bills and they could expect to see decreased fuel costs and the government duty cut keeping bills down.

He said the rate adjustment component in the licence CUC has to supply power to the islands was intended to push the firm to constantly improve its efficiency.

See full report: CUC-Rate Adjustment, 25 May 2016

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Category: Local News, Utilities

Comments (18)

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  1. Jotnar says:

    Posters here should direct their anger at the ERA. Its natural to expect the monopoly provider to maximise returns to their shareholders – they are not a charity. Its the ERAs responsibility to hold them to account on service standards and pricing. There is no way a country of our size will be able to afford competition in the distribution of power, or have enough competition in generation to seriously displace base load provision, but again, provided ERA does its job, that should be a manageable problem.

    • Anonymous says:

      Spoken like someone who doesn’t have a clue what he’s on about. There is a pricing mechanism in CUC’s licence that says whether there should be an increase in rates taking into account any CPI increase and the returns to CUC. The ERA’s job is to ensure that everything has been calculated correctly. Especially with an increase of 11 cents for the average residential consumer, there is no reason for any anger to be directed against the ERA or anyone at all for that matter. If you walk around George Town for a few minutes you can pick that up off the ground.

  2. Anonymous says:

    Well I got a plan I just need one solar panel to run one fridge and one deep freeze in the day as no one is never home all day till late evening…I will cut the power off each morning by the panel box…I MUST SAVE LIKE THIS..

  3. Anonymous says:

    Im signing up for a six week online course next month….The subject, “How to obtain illegal electricity”.

  4. Soldier Crab says:

    CUC should be nationalised.
    Forget historic associations of nationalisation with socialism; ‘worker’s control’ doesn’t work.
    BUT nationalisation to ensure control of a utility company by it’s customers is perfectly valid.
    Everyone from Government down accepts that the Water Authority is and should remain a publicly owned business; there is absolutely no good reason why the supply of electricity shouldn’t be organised the same way.

    • My 5 cents says:

      I don’t believe that anyone could believe that a electric utility run by the Cayman government would be any better. Think of who would be subsiding free power for hospital, schools, indigent etc.

  5. Anonymous says:

    Don’t worry folks, free energy coming before Christmas. Better dem CUC folks stock up on profits now.

  6. broke says:

    Increasing energy ‘taxes’ in a recession, good move.

  7. Anonymous says:

    ha. stick it to us CUC.

  8. Anonymous says:

    How the hell is the cost of power in Cayman still going up when everywhere else in the world it is going down or they are moving to sustainable energy?? Pile of sh*t.

  9. Anonymous says:

    If lower global fuel prices are used as grounds to raise rates, then it’s an admission that fuel factor is part of CUC’s marginp calcs.

  10. Anonymous says:

    the increase will not be going toward bonus payouts to staff at year end….no really

  11. Caymanian realistic says:

    CUC deserve this, I mean the power outages that cost my business 1000’s in sales ( resturant), having one pay staff waiting for power to return. I mean what an amazing job they have done. Well done CUC!!!!

    GET THE FCK OUT OF HERE… INCREASE SAY WHAT!!!

    PPM and your idiot board you dun gwan uh er!!!!

  12. Anonymous says:

    Every property should have solar panels if only to heat water it’s a disgrace this countries attitude to clean energy.
    And how can CUC say be more efficient in the summer months when there diesel turbines are the least efficient and most polluting systems on the planet.
    Time to break the monopoly on electric

  13. SSM345 says:

    Can CUC place a title at the top of our bills saying “Bend Over” from now on, its about time they just stated the facts.

    Thieving bastards.

  14. Lionfish says:

    It is time to put solar panel on every roof now!! Sod to CUC!!

    • Anonymous says:

      Government could put a stop to the increase…but a useless government it is…lets hope the next year goes by quickly!!!

  15. Anonymous says:

    “I have no problem with this what so ever. CUC deserve a little extra for the stellar service they provide us with.” – Said nobody ever

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